Industry Odisha Bureau, Oct 16: Asian Paints, Berger Paints and Birla Opus have all signalled increases of about 3–4%. It marks another round of pricing action as crude-linked costs climb.
Who Is Raising Prices, and When
Asian Paints, India’s largest paintmaker, will raise prices by an indicative 3%. The increase covers its full product range from 1 November. A dealer letter dated 25 September cited geopolitical developments. These have sharply raised raw material, packaging and logistics costs, the company said. Further details will reach dealers in October.
Berger Paints, the second-largest player, plans a 3–4% hike. It will take effect between late October and early November.
Birla Opus, the Aditya Birla Group’s paints arm, also plans a 3–4% rise. Its exact dates are yet to be announced. The company has urged dealers to stock up before the revision.
Why Crude Matters
Paint production depends heavily on crude-linked inputs. Solvents and resins, key paint ingredients, are derived from crude oil. When oil prices rise, these materials become costlier. Packaging and transport expenses add further pressure on manufacturers.
Margins Still Under Strain
Earlier hikes have not fully covered rising costs. Berger Paints MD and CEO Abhijit Roy said so in a September email. He said input prices had risen significantly in recent months. Roy added that the company was waiting for prices to stabilise. Only then would it decide on any further revisions.
Paint makers began staggered price increases from 1 April. They also sought to trim trade discounts offered to dealers. Those moves helped deliver a better-than-expected June quarter for top players.
Betting on Festive Demand
The festive season is crucial for decorative paint sales. Last year’s Diwali was subdued, so companies are hoping for a rebound. Better weather and a longer renovation window have raised hopes. An early pickup in demand also points to a stronger October.
Manoj Menon, head of research at ICICI Securities, expects demand to hold up. Households planning to paint their homes will likely go ahead, he said. Paint is a small part of total costs compared with labour. So the hike should barely affect overall job costs, according to Menon. He added that the increase broadly covers higher input costs.
Rivals Likely to Follow
Kansai Nerolac and JSW Dulux typically follow the market leader on pricing. None of the companies responded to emailed queries.
Paint Stocks Outperform
Paint stocks have outperformed the market since 1 April. Berger Paints shares rose 12.51% over the period. JSW Paints gained 5.75%, Asian Paints 5.58% and Kansai Nerolac 1.95%. The benchmark Nifty 50 rose just 1.4%.
The Balancing Act
The second price hike reflects a careful balance for the industry. Companies must recover rising costs without hurting festive demand. Crude volatility could keep production costs under pressure. Diwali sales will show how well that balance hold.
